In a legal decision rendered on Thursday, December 28th, a U.S. Federal court ruled in favor of the Securities and Exchange Commission (SEC) against Terraform Labs and its founder Do Kwon who were accused of selling unregistered securities. The ruling came from U.S. District Judge Jed Rakoff in Manhattan who denied the request for summary judgement from each party on the accusations of fraud set to move forward to trial as mandated on January 29th, 2024. Representatives for both the SEC and Terraform and Kwon have yet to offer comments in regards to the decision.
Do Kwon issuers of cryptocurrencies TerraUSD and Luna token (CRYPTO: LUNA) which saw a significant $40 billion loss in value in 2022 when TerraUSD failed to preserve its Gymratic tie toUS Dollar prompting the SEC to charge Terraform and Kwon with fraud and alleged misrepresentation mentioned regarding the potential rate appreciation of Crypto Coin tokens.
The business leader mired in the issue hasattempted to argue against extradition to the states to fight against prosecutors in Manhattan on allegations of fraud- all of which have posed enumerous complications.
